Regulatory Extract: New policy mandates GHG intensity thresholds for certification to boost environmental governance and ESG compliance. ESG BROADCAST shares key takeaways.
Regulatory Extract: On April 2025, the Ministry of New and Renewable Energy (MNRE) launched the Green Hydrogen Certification Scheme of India (GHCI), establishing the country’s first formal mechanism to certify hydrogen as “green” based on emissions thresholds. This certification framework is part of the broader National Green Hydrogen Mission, inaugurated in January 2023 with a total outlay of ₹19,744 crore, aiming to position India as a global hub for green hydrogen production, export, and technology leadership.
The GHCI sets a greenhouse gas (GHG) emissions threshold of 2.0 kg CO₂-equivalent per kg of hydrogen, averaged over a 12-month cycle, applicable to emissions arising within defined system boundaries. These include both direct and indirect emissions from electricity, fuel use, water treatment, electrolysis, purification, drying, compression, and onsite storage. Production pathways eligible for certification include electrolysis and biomass conversion technologies such as gasification and pyrolysis. Hydrogen producers must engage Bureau of Energy Efficiency (BEE)-accredited carbon verifiers (ACVs) for annual monitoring, reporting, and independent emissions verification.
Two types of certificates will be issued under the GHCI: (a) at the facility level – Concept Certificate and Facility Level Certificate; and (b) at the production level – Provisional Certificate and Final Certificate. The Final Certificate will contain a unique identifier for each 100 kg batch of hydrogen produced, detailing project credentials, production year, and verified emissions data.
As per the scheme’s mandate, certification is compulsory for producers who: (i) receive incentives or subsidies from central or state governments, including beneficiaries under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme; (ii) sell or use green hydrogen in India; (iii) claim any form of tax or regulatory exemption; or (iv) partially export and partially supply hydrogen to Indian consumers. Facilities with annual production capacities below 10 tonnes may opt-in voluntarily, while producers exporting 100% of their output without availing any Indian incentive are exempt from final certification but must comply with the importing country’s reporting requirements.
The MNRE will designate an Implementing Agency (IA) responsible for operationalizing the scheme, while a Technical Committee, chaired by the Mission Director of the National Green Hydrogen Mission, will offer strategic oversight and approve pathway inclusions. Producers must register on a dedicated Green Hydrogen Certification Portal (GHCP) to upload data and verification reports. The scheme aligns with ISO 19870:2023 standards for GHG quantification and relies on the Indian Grid Emission Factor for uniformity in emissions accounting.
Strategic significance lies in positioning India’s green hydrogen market as a globally credible and transparent ecosystem aligned with international climate goals and domestic net zero ambitions. The GHCI framework not only enhances investor confidence by ensuring supply chain emissions traceability, but also prepares Indian producers for participation in global green hydrogen trade where certification is increasingly a prerequisite. ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
